How to Register Your Startup in India

Registering your startup in India is now a simplified process. It is attributed to the Startup India scheme adopted by the government. Its creation in 2016 is one of the key components of the program to drive innovation and entrepreneurship and to create a fertile ground for startup development. With registration of your startup under the Startup India scheme, you will have at your disposal a range of benefits, including tax exemptions, simplified compliance and funding opportunities.

As per the Startup India rules, a startup refers to a firm working on developing, innovating, and improving products, processes, or services. It could be a Private Limited Company, Partnership Firm, or Limited Liability Partnership (LLP) as an entity option. For the company to be qualified for this scheme, it should not have exceeded revenue of Rs 100 crores in any of the previous financial years. And it should not be more than ten years old since its incorporation.

We are aware of the significance of registration of your startup at CompRegi and how that can make things a lot easier for you as an entrepreneur. Our team members with expertise in the procedure to register in startup India can indeed steer you through each step and make sure you are not distracted from the core task of building your business while our team handles the legal formalities.

Who Can Register a Startup in India

To be eligible for registered startups in India, an entity must meet the following criteria:

• For that purpose, we propose it to be incorporated as a Private Limited Company, Partnership or Limited Liability Partnership (LLP).
• The gross turnover of the company should not exceed Rs 100 Crores during any of the preceding financial years as determined by the accounts of the company.
• It must innovate, develop, or improve products, processes, or services or have a scalable business model with a high potential for employment generation or wealth creation.
• It must be not older than 10 years from the date of its issuance.

Eligibility Criteria for Startup India Registration

To be eligible to register your startup in India, an entity is required to fulfill certain criteria. Here is a detailed breakdown of the eligibility requirements for the Startup India Scheme:

• Age of the Applicant: The eligible candidate for the scheme must be any Indian citizen who is above 18 years of age.
• Age of the Firm: The company should be incorporated at most ten years from now.
• Type of Company: The company should have been enrolled as a Partnership Firm, Private Limited Company, or a Limited Liability Partnership (LLP).
• Annual Turnover: The company’s turnover should not be more than Rs. The company has been able to cut down its expenses and reduce the number of crores spent in any financial year since Incorporation.
• Original Entity: The original promoters should have established the company, not by rearranging or rebuilding an existing corporation.
• Innovative & Scalable: The startup should have a plan for the development or improvement of a product, process, or service. The business model of the startup should be scalable and high potential for creating wealth and jobs.

Companies working towards developing a new product or service can avail of benefits under the Startup India policy if they fulfill the following conditions:

• Concerned startups should work to develop, deploy or commercialize any product or service that is motivated by the current technology or intellectual property.
• Startups should target existing products and improve them or create new ones in order to add value to the customer or simplify workflow.
• Startups should focus only on fabricating a new product that can be both beneficial to the customers and the workflow.

For Registration and approvals, startups are required to obtain approval from the Department for Promotion of Industry and Internal Trade (DPIIT) based on the following criteria:

• A recommendation for an incubator from any post-graduation college.
• Recommendation from a nationally recognized incubator.
• A patent filed and published in the specific area of the product or service in the Indian Patent Office Journals.
• Registration with SEBI for startups that provide services related to funding and equity.
• Funding letter from the government or the state for any scheme that aims to promote innovation.

As far as partnership startups are concerned, these should be owned by women or persons belonging to the Scheduled Castes and Scheduled Tribes in the proportion of 51%. On top of that, they should not have skipped any credit payments.

Documents Required for Startup Registration in India

To know how to register for startup in India keep the following documents ready:

• The incorporation/registration certificate of your startup.
• Funding evidence, if available.
• Power of Attorney of the authorized representative of the company, LLP or partnership firm.
• Demonstration of concept like pitch deck/website link/video (for the startups in validation/ early traction/scaling stages)
• The information on patents and trademarks, if available.
• List of awards or certificates of recognition, if any, available.
• PAN Number

Steps to Register Your Startup With Startup India

Listed below is a step-by-step guide on how to register as a startup in India:

Step 1: Incorporate your Business

The first thing you should do in registration of your startup business is to register a startup as a Private Limited Company, Partnership Firm, or LLP. This will involve producing the necessary legal documents like the Memorandum and Articles of Association (MoA and AoA) and then submitting them to the Registrar of Companies (RoC).

Step 2: Register with Startup India

After your business is legally registered, you can go to the Startup India official website and choose the “Register” option. Fill in the requested information, for example your name, mobile number, and mail address, and then create a password. Upon completion of the registration by you, you will be sent a verification email.

Step 3: Get DPIIT Recognition

The next step after setting up Startup India profile is to obtain recognition from DPIIT. This recognition is paramount for startups to enjoy the tax breaks that come with the Startup India scheme. To obtain DPIIT recognition, log on to Startup India account and click on the ‘Get Recognized’ button. Submit a form with necessary details and attach the given documents.

Step 4: Recognition Application

Application in recognition stage requires you to enter details of your startup, including its name, incorporation date, sector, and a concise description of your product, process, or service. Besides this, you will also have to put down that the startup is eligible and the information is genuine and authentic.

Step 5: Submit the Documents for Registration

After completing the application form for recognition, you are required to attach the required documents mentioned above. All papers must be clear, readable, and in the stipulated layout.

Step 6: Recognition Number

After your application has been approved and documents submitted, a certificate number will be issued to you by the DPIIT. This unique recognition number, which is valid for ten years from the date of incorporation of your startup, is the only one that you will be given. This identification number would be a gateway to the scheme and you can access the benefits under the Startup India scheme.

Conclusion

Setting up a startup in India is not very complicated, but rather, it is a simple task. You just need the right team and necessary documents to handle or your legal matters. Our professional team at CompRegi can guide you in the whole process of setting up your startup in India. We are with you from the time you choose to include your business to when you obtain DPIIT recognition. Our team makes sure that each step is completed accurately and promptly so you can save on time and effort.